Bailout fails, economy goes boom

[Voidwalker]

CNNMoney.com Market Report - Sep. 29, 2008

 

[The Last Istari]

/rage CHENEYYYYYYYYYYYYYYYY!!!!!!

Really though, what in God's name convinced them to decide against it?

 

[Angry_Bovine]

/sigh

They were afraid of spending a little cash that they want to keep in their wallets?

 

[Masiah]

When the crisis get's that same money out of their wallets, they will regret it.

 

[Gausslander]

I think that's hilarious, to be honest.

 

[Angry_Bovine]

I think that's hilarious, to be honest.

What, the money hoarding, or the whole "economic crisis?"

 

[Gausslander]

The decision, the fact that they would propose such a hideously absurd proposal and then having it get turned down... only to figure out it would've made a big difference.

 

[~Void~]

I think that's hilarious, to be honest.

Why? This doesn't just affect America, you know. It's world-wide. Because America is tied into almost every country's economy.

 

[Gausslander]

Why? This doesn't just affect America, you know. It's world-wide. Because America is tied into almost every country's economy.

The decision, the fact that they would propose such a hideously absurd proposal and then having it get turned down... only to figure out it would've made a big difference.

.........

 

[Angry_Bovine]

And generally, a column that helps support the world is best left standing.

 

[brad.dude03]

It actually would have made a difference, since now the economy is going to spiral out of control. A free market got things the way they are now, by actually imposing restrictions and getting involved, they might have been able to stem the tide.

No such luck.

If the government bought out all of the toxic assets, that would basically reset shit to zero. I don't know what's going to happen now.

 

[Angry_Bovine]

We let the toxin continue to accumulate. That simple.

However! I think: If people can't do stuff by themselves, the government does indeed need to step in.

 

[Steel_Stallion]

Time for anarchy to come in and save the day....

...

...

Any minute now..

 

[Bob27]

/rage CHENEYYYYYYYYYYYYYYYY!!!!!!

Really though, what in God's name convinced them to decide against it?

I don't know that much about american politics, but from what I have heard they decided against it because the party that George Bush is in is trying to stay in power or something like that.

 

[brad.dude03]

Wrong. George Bush can't stay in power You can only be elected twice in America (Thank God).

But here's the problem: 700 billion dollars worth of toxic debt. Toxic debt are financial assetts that no longer hold any value. A large amount of it is in Sub Prime Mortgages and Asset Backed Commercial Paper.

These investors, most of them without even knowing it (Subprime mortgage owners, seniors putting their money away in something that's supposed to be safer and more reliable than government bonds) can't pay their way out of that.

If you put a hundred grand into ABCP, right now it's frozen in there. You can't access your money. It's gone.

THIS is why the government needs to come in. These corporations that were taking these investors money are all fucked now too. Some of the largest financial insitutions in the world, going down the toilet because of their terrible practices.

They got themselves into this, and there's no chance that they can get themselves out. The government already tried that, and 3 corporations had to be bailed out.

 

[Bob27]

Wrong. George Bush can't stay in power You can only be elected twice in America (Thank God).

Well yea I know that, but the what I said was that the party wants to stay in power, not George Bush himself. So something like 60% of the people from Bush's party voted against him because they wanted to try and win the next election.

 

[Mecheon]

My morbid curiosity wants to see the end of this. Oh, sure there'll be some economic crisis everywhere, but damn do I want to see the end result of this

By the way, this is the exact reason we need more government control over certain sectors: So stuff like this doesn't happen

 

[The Last Istari]

I think they're going to vote again on Thursday actually.

It'll probably get passed this time, after seeing the DOW drop by 778 points.

Well yea I know that, but the what I said was that the party wants to stay in power, not George Bush himself. So something like 60% of the people from Bush's party voted against him because they wanted to try and win the next election.

Obama or McCain will probably replace them all anyway. Plus, I doubt they'd do that. They'd be screwing the nation and possibly the world, Asia and Europe are feeling this too. I doubt they'd be able to take all the guilt. It's Bush's party, not Dick Cheney, they still have souls.

 

[Elenai]

Like any capitalist society, these business' in need of bailing out should have to fix their own mess. Why should the government use our money to bail out privately owned businesses, even if the economy is going to fall when the common business can hardly get a loan these days?

Its simply not fair that someone who owns/owned billions of dollars worth of business assets, and then on top of that has millions of dollars in savings and private assets, should be bailed out by the government using the money of the populace, when the common business owner hardly receives any help when his business is on the verge of collapse, when he is on the verge of losing everything he owns, and his family is about to experience a tough time where they can barely make ends meet, let alone remain a stable and functioning economically sound unit.

It will lead to a dramatic economic downturn or even a collapse entirely...but at least its as close to a fair fall as it is.

That is why the bill was turned down.

If the government wants to use 700 billion dollars worth of tax payer money...they need to make bloody sure that the money is used with heavy oversight, and for the right damn things, and not used in a way that makes sure Sir. Edward Richchild III, can have keep his 5 houses, and keep his pockets lined.

700 billion dollars will not be given for a "non reviewable by any court of law" purpose for saving the assets of Wall Street, if the people have anything to say about it.

And yes...I'm rather miffed about the current economic status, and I am not pleased with the higher income bracket getting all the help while the middle class can barely keep its feet on the ground.

 

[The Last Istari]

As we all are. But if I remember correctly, the bigwigs would only get a certain amount of cash. Congress made it clear that they would squawk very loudly if the CEOs just walked away from this.

As for the taxpayer thing, I can understand, but this is starting to erupt into a global incident.

If there's one thing our foreign investing insured, it's that if we go down, we'll drag a few countries down with us.

 

[TheDivineBoss]

The Great Depression Redux.

Nuff said.

 

[Angry_Bovine]

The Great Depression Redux.

Nuff said.

QFT. Mostly. I suppose this one will be different. We'll just have to wait and see.

 

[Mor)L(unE]

I think market corporations should massifly buy stocks instead of selling them, if they do that... problem solved

 

[redmarine]

My country the Faroe Islands is slowly losing one of its two banks. Our economy isn't very healthy and to not mention the political chaos going on at the moment. Though our government have been good at trying to remove most of the impact on the public sector.
The technology companies are pretty much falling down. Apple's value got cut in half while Microsoft dropped by 9%. That's pretty huge.

How long do you guys predict this will last? My guess is at least 2 more months.

 

[Masiah]

Elenai, you are completely right in your position if it's looked from the moral view... but being realistic, if these companies fall, the rest of the american market will go down with them, including many other from other countries heavingly dependant on USA's economy (an that's nearly the whole world). The tax money they are planning to use will be lost, either by inverting it into these companies or by the economical crisis. One way or onother, that money is gone.

 

[redmarine]

Elenai, you are completely right in your position if it's looked from the moral view... but being realistic, if these companies fall, the rest of the american market will go down with them, including many other from other countries heavingly dependant on USA's economy (an that's nearly the whole world). The tax money they are planning to use will be lost, either by inverting it into these companies or by the economical crisis. One way or onother, that money is gone.

So you are saying that all the invested money on these companies that are in crisis will be gone? That's a lot of money.

 

[Masiah]

If not all, most of it.

 

[Angry_Bovine]

If not all, most of it.

So, that would bring about this question: What's more important, 700 billion dollars or the (temporary) security of USA's economy (and subsequently the world's)?

Edit - 700 billion dollars worth of taxpayer's money

 

[Masiah]

I can't say that you are wrong, it's just my opinion and suposition of what will happen next. I may be wrong, I may be right.